What exactly does it look like if an atom absorbs energy? Does it change into more kinetic energy of the atom?(i.e. If an electron absorbs a photon from n=2, moves to n=5, then comes down to n=3, what does the energy not let off as light do to the atom?)

When an electron goes to a higher energy level the electron absorbs energy. When the electron goes back down to a lower energy level, the energy becomes more negative as it is becoming less excited. When it goes to a lower energy level it emits a photon, in other words the difference in the energy is given off as a photon.